The Canadian Dollar hits a eight-week low against the USD

The Canadian Dollar has dropped to an eight week low versus the US Dollar this afternoon. This mornings disappointing news that Canadian economic growth slowed in June reduced the likelihood of further interest rate raises by the Bank of Canada. August has been the ‘Loonie’s’ worst performing month against the US Dollar dropping 3.5%, its biggest depreciation since June 2009.

The Fed’s admission that the US economic recovery is stalling is resulting in diminished appetite for currencies linked to global economic growth such as the Canadian Dollar. Further risk lies ahead with Friday’s US non farm payroll figures, could we see a further weakening of the ‘Loonie’?